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T+1 | UK & Europe to Follow the Americas’ Lead

As T+1 reshapes global markets, Sia explores its impacts and offers a robust framework to help UK & EU firms prepare for the shift.

The Shift to T+1: Why It Matters Now

In May 2024, North American markets officially transitioned from a T+2 to a T+1 securities settlement cycle. The change, reducing the time between trade execution and settlement to a single business day, has already delivered tangible benefits: increased affirmation rates, reduced margin requirements, and consistent settlement fail rates. As global markets take note, the UK and Europe are now accelerating their own plans for T+1 implementation, likely by the end of 2027.

Key Impacts to Anticipate

Sia has identified four core dimensions affected by the T+1 transition:

  1. Settlement Fails: ​The compressed timeline will increase the risk of fails due to increased time pressure
  2. CSDs & Trading Venues​: Europe’s numerous CSDs and venues add complexity to settlement efficiency, standardization across all parties will be the key
  3. CCPs: CCP risk exposure will be reduced and capital releases will be sped up, whilst netting and margin calculation timelines will be tightened
  4. Regulatory Change: CSDR will amend Article 5 (2), for example will be amended and the settlement discipline delegated regulation​; trade reporting deadlines for Transactional Reporting Requirements will need to align with T+1

Our T+1 implementation framework

Sia has been proactively anticipating the shift to T+1 trade settlement and we can provide a framework for T+1 using extensive experience from the US.

T+1 implementation framework

How can Sia help

Sia has a rich experience with T+1 settlement transactions, below is an example of the deliverables and services from some of our past experiences:

DTCC T+1 Accelerated Settlement

  • Program / Project Management

Initiation and Planning, Execution & Monitoring / Controlling, Reporting and program / Project closure

  • Testing & JIRA Support

Program Management Office Lead, Program Management Office, Testing & JIRA Support

Contact us to learn more

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